What hikes auto premiums for younger men?

When it comes to auto insurance in Ontario, it doesn’t pay to be young.

A 20-year-old new driver in Ontario can end up paying around $4,000 more annually for car insurance than a 35-year-old new driver with a similar profile, a new report from aggregator Rates.ca finds.

What’s more, that 20-year-old male in Toronto driving a recent-model-year Honda Civic, who has no claims history and also no driver training, might pay about $13,418 per year.

A female driver with the same profile of age, experience level and car type could expect to pay around $9,607. But a 35-year-old new male driver could pay about $7,612 per year. That’s almost $4,000 less than a 20-year-old with the same level of experience. 

Estimated premiums for the 20-year-old male driver are based on the three lowest average quotes for a Toronto resident driving a 2024 Honda Civic four-door, Rates.ca says. The hypothetical driver is free of claims and convictions, averages 10,000 kilometres annually, and carries optional collision and comprehensive coverages with a $1,000 deductible.

“Younger drivers typically present a higher statistical risk for insurers,” says Daniel Ivans, a broker and Rates.ca insurance expert.

“Age and experience are significant factors in determining premiums, and gender can also influence risk assessments. Data shows that younger male drivers are more likely to engage in behaviours such as speeding or aggressive driving, which leads to higher insurance costs. That’s why a 20-year-old new driver may face substantially higher premiums compared to a new driver who is in their 30s or 40s.”

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While the report’s findings indicate gender, age and experience contribute to these cost gaps, it also notes young men face the steepest costs because statistics show they’re more likely to have serious driving infractions. The report says around 1.3% of men under age 25 report having major or serious tickets. That compares to 0.35% of male drivers over 60 and indicates younger drivers are 73% more likely to receive severe infractions. 

Drivers under age 25 are also 66% more likely to have reported speeding tickets, 53% are more likely to have any ticket, and 17% are more likely to have recorded accidents, when compared with drivers over 25. And male drivers under 25 are 63% more likely to have reported major or serious tickets, and 28% more likely to have speeding tickets than women drivers under 25.

But there is one thing younger clients can do to mitigate high premiums, notes Rates.ca. Their study finds drivers who complete a beginner driver education course that’s approved by Ontario’s Ministry of Transportation may be able to shave around $2,000 off their premiums.

“Even though younger drivers start with higher premiums because of their risk profile, they still have a lot of influence over how much they pay,” Ivans says.

“Completing an approved driver education course, gaining experience, and participating in usage-based programs that demonstrate clean driving habits all help lower costs. For new drivers, those savings can add up to thousands of dollars a year.”